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5 Reasons Why Investors Should Buy FedEx (FDX) Stock Now
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FedEx Corporation’s (FDX - Free Report) measures to reward its shareholders are encouraging. The company’s 2023 earnings guidance looks encouraging.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes FedEx an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse year to date. Shares of FedEx have gained 32.5% so far this year compared with the 14.4% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: FedEx currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.
Northward Estimate Revisions: The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for FDX current-quarter earnings has moved up 14.7% in the past 90 days.
Positive Earnings Surprise History: FedEx has an impressive earnings surprise history. The company delivered an earnings surprise of 8.79% in the last four quarters, on average.
Growth Factors: FDX’s board of directors recently approved a dividend hike of 10%, thereby raising its quarterly cash dividend from $1.15 ($4.60 annualized) per share to $1.26 ($5.04 annualized). The raised dividend is anticipated to be paid out on Jul 3, 2023, to shareholders of record at the close of business on Jun 12.
FedEx has been consistently making efforts to reward its shareholders through dividends and share buybacks, which are encouraging. In the first nine months of fiscal 2023, FedEx paid out dividends worth $888 million (higher than $598 million in the first nine months of fiscal 2022).
In fiscal 2022, FedEx paid out dividends worth $793 million (higher than the $686 million dividend payout in fiscal 2021). Such shareholder-friendly moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.
Driven by its cost-saving plan, which is expected to accelerate in the fiscal fourth quarter, management raised its earnings outlook for fiscal 2023. FDX expects earnings per share for 2023 (prior to MTM retirement plans to account for adjustments and excluding estimated costs related to business optimization initiatives and costs related to business realignment activities) between $14.6 and $15.2 (earlier guidance - $13-$14).
Copa Holdings has an expected earnings growth rate of 40.8% for the current year. CPA delivered a trailing four-quarter earnings surprise of 33.35%, on average.
The Zacks Consensus Estimate for CPA’s current-year earnings has improved 15% over the past 90 days. Shares of CPA have risen 22.7% over the past six months.
AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 40.5% over the past 90 days. Shares of AAL have gained 14.8% over the past six months.
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5 Reasons Why Investors Should Buy FedEx (FDX) Stock Now
FedEx Corporation’s (FDX - Free Report) measures to reward its shareholders are encouraging. The company’s 2023 earnings guidance looks encouraging.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes FedEx an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse year to date. Shares of FedEx have gained 32.5% so far this year compared with the 14.4% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: FedEx currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.
Northward Estimate Revisions: The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for FDX current-quarter earnings has moved up 14.7% in the past 90 days.
Positive Earnings Surprise History: FedEx has an impressive earnings surprise history. The company delivered an earnings surprise of 8.79% in the last four quarters, on average.
Growth Factors: FDX’s board of directors recently approved a dividend hike of 10%, thereby raising its quarterly cash dividend from $1.15 ($4.60 annualized) per share to $1.26 ($5.04 annualized). The raised dividend is anticipated to be paid out on Jul 3, 2023, to shareholders of record at the close of business on Jun 12.
FedEx has been consistently making efforts to reward its shareholders through dividends and share buybacks, which are encouraging. In the first nine months of fiscal 2023, FedEx paid out dividends worth $888 million (higher than $598 million in the first nine months of fiscal 2022).
In fiscal 2022, FedEx paid out dividends worth $793 million (higher than the $686 million dividend payout in fiscal 2021). Such shareholder-friendly moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.
Driven by its cost-saving plan, which is expected to accelerate in the fiscal fourth quarter, management raised its earnings outlook for fiscal 2023. FDX expects earnings per share for 2023 (prior to MTM retirement plans to account for adjustments and excluding estimated costs related to business optimization initiatives and costs related to business realignment activities) between $14.6 and $15.2 (earlier guidance - $13-$14).
Other Stocks to Consider
Some other top-ranked stocks from the Zacks Transportation sector are Copa Holdings, S.A. (CPA - Free Report) and American Airlines (AAL - Free Report) . Each of these companies presently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings has an expected earnings growth rate of 40.8% for the current year. CPA delivered a trailing four-quarter earnings surprise of 33.35%, on average.
The Zacks Consensus Estimate for CPA’s current-year earnings has improved 15% over the past 90 days. Shares of CPA have risen 22.7% over the past six months.
AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 40.5% over the past 90 days. Shares of AAL have gained 14.8% over the past six months.